In today's era of heightened environmental awareness, the logistics and supply chain domains are undergoing a transformative shift toward sustainability and environmental responsibility. As a result, large shippers and logistics service buyers from around the globe are increasingly prioritizing logistics partners who not only claim to be environmentally responsible, but can substantiate these assertions with actual CO2 emission data for all their freight operations. In this landscape, the ability to provide accurate emission data has become a crucial factor for logistics service providers, BCOs, carriers, and even LogTech solution providers who aim to secure a leading position within their market niches.
The Shipping Industry is on the Brink of Significant Change
Due to the constantly evolving global regulatory landscape, industry initiatives, and governmental measures to address climate change, shippers will inevitably face new emission reporting requirements, placing them in the league of environmentally conscious logistics service buyers.
In order to be compliant with GHG scope 3, some shippers are already actively seeking partners that go beyond industry-standard estimations and offer genuine, real-time emission data. As a result, the common industry practice of relying on historical or generic data to calculate freight carbon footprints will no longer suffice. Instead, shippers will demand a higher standard — actual data received directly from carriers. Only in this way can shippers accurately assess the true environmental impact of their supply chain and transportation activities.
For businesses aiming to grow in a market in which environmental responsibility is a core value, embracing this trend is not just a choice, but a strategic imperative. The same is true for the partners that shippers work with.
Get Your Business Ready for the Era of Environmental Responsibility
To stay ahead of the competition and proactively address upcoming legislative changes, businesses must embrace this transformative shift in emission reporting practices.
If you are a shipper, you will most likely shift all your attention toward LSPs that comply with the latest trends and requirements. Of course, it will take some time before you reach your goal, as these sorts of transformations don't happen overnight. However, the path is clear and straightforward.
If you are a logistics service provider, the situation is more challenging. Undoubtedly, such a shift represents an opportunity for LSPs to position themselves as leaders in terms of environmental responsibility. On the other hand, this places a burden of responsibility on the data they provide. As using industry average indices is no longer an acceptable option, LSPs must opt for innovative solutions to overcome this challenge.
To comply with new standards for transparency and sustainability, LSPs employ modern platforms that provide AI-based calculations or shift to a new TMS/visibility platform that provides this kind of information. Data received in this manner is most likely accurate, but is often still seen by LSPs as another “guesstimation” for which they must take unwanted responsibility while providing emission data to shippers they work with.
If your business is a LogTech software/solution vendor, this industry-wide shift could be a great chance to stand out from the crowd, but only if you can provide actual CO2 emission data. After all, the market is currently oversaturated with countless solutions that offer AI-based calculations and industry average indices.
What is common for logistics service buyers, LSPs such as global forwarders, and solution vendors/providers is the challenge of getting actual data. As for today, the only way to get 100% accurate and reliable information is to request it from your asset-owning carriers — the party that is sitting in the driver’s seat in this regard. Since these carriers own the vessel, aircraft, rail wagon, or truck fleet that carries the freight, they have all the information needed to perform calculations and provide the data to their partners.
However, not all carriers share this information by default, and those who do share it do so in a way that is convenient for them. As there is no such thing as an industry-standard data-transfer protocol or data format for emission-related data, you will have to deal with anything from an Excel sheet sent via email to a devoted message sent via API or EDI, depending on how sophisticated the carrier's IT capabilities are. To obtain a full picture of the workload you might face when working with carriers, multiply the received emission report by the number of carriers you work with and the freight volume you expect to move with them.
As you can see, the shift toward sustainability and environmental responsibility does present new opportunities, but also imposes a significant burden on the industry stakeholders who must possess enough resources and knowledge to keep up
Unlocking Actual CO2 Emission Data to Meet Your Clients' Requirements
Whether you are a logistics service provider, logistics service buyer, or LogTech solution vendor aiming to achieve business growth in a market where environmental responsibility is a core value, Youredi’s Carrier Emission Report Connectivity service is the key to enhancing your emission reporting capabilities and ensuring a bright future for your business.
Youredi offers a comprehensive solution for businesses looking to meet the growing demand for actual emission data.
Why should you choose our service over interactions with carriers? Because we offer speed and simplicity. Instead of building DIY connectivity with carriers, you can leverage our existing ecosystem of carriers. We will collect the data from carriers in real-time and seamlessly transmit that data to you via our proprietary iPaaS, which is designed to meet the ocean logistics data connectivity needs. Moreover, we ensure that you receive the data directly in the format and via the technology of your choice, regardless of the way a chosen carrier provides its emission reports. The carriers can even send the data as an Excel file. We will process that information and create a message that can be sent to you via EDI or API. In this way, you can obtain data directly from the source responsible for emissions. It’s that simple!
The Benefits to Expect from Our Service:
- Real-Time Data: Access actual CO2 emission data directly from carriers in real-time, allowing you to provide your clients with accurate and up-to-date information.
- Compliance Assurance: Stay ahead of evolving emission legislation with a service that ensures your business is compliant with emerging environmental regulations.
- Competitive Edge: Position your business as a leader in sustainability and gain a competitive edge by meeting and exceeding your clients' environmental expectations.
By leveraging our advanced connectivity service, you can enhance your emission reporting capabilities and demonstrate a commitment to environmental responsibility without placing any additional burden on your team or making any dramatic changes to your TMS /IT setup.
As the industry embraces a new era of environmental responsibility, Youredi's Carrier Emission Report Connectivity catalyses your business to thrive in this transformative landscape. Unlock the power of actual CO2 emission data today and pave the way for a sustainable and prosperous future.
To learn more about the solution, visit the Carrier Emission Report Connectivity Service page or request a presentation by reaching out to talktous@youredi.com
